Petrol and diesel owners could be hit with higher bills as tax freeze is set to expire
As car insurance continues to rise and the VED rate is set to increase, petrol and diesel car owners could also face higher fuel bills in 2024.
The vehicle retailer CarWow has warned that petrol and diesel owners could see significant rises at the pumps during 2024.
In a year that is set to see rises is Vehicle Excise Duty (VED) and car insurance, the company noted that the freeze on fuel duty is also set to expire in April.
Fuel duty, the tax motorists must pay on every litre of fuel, was frozen at it’s current rate by Chancellor of the Exchequer Jeremy Hunt in March 2023 to help prevent significant increases in the cost of petrol and diesel.
He also extended a previously imposed 5p-per-litre cut on the duty for the time being, meaning UK motorists currently pay 47.95p for each litre of fuel they pay.
However, whilst the cost-of-living crisis continues to affect drivers, both the cut and the freeze could be dropped when the spring budget is announced on March 6 2024.
READ MORE: Drivers can buy used Porsche EV for under £50,000 as oversupply continues to slash prices
A spokesperson for CarWow highlighted that it is unknown if fuel duty will rise in the budget, but some motoring experts are predicting it could add pounds to the cost of filling up.
They explained: “The discount was introduced to help motorists with skyrocketing petrol prices amidst the cost-of-living crisis, however it could be scrapped in this year’s budget, along with a potential hike in fuel duty following increasing pressure from environmentalist groups.
“It’s not clear how much it may rise by, but even losing the five pence discount could add around £3.000 to the cost of a tank of fuel.”
Don't miss...
Headlight modification can see drivers fined for looking like emergency vehicle [REPORT]
Drivers can claim costly pothole damage as councils neglect two thirds of roads [ANALYSIS]
Drivers most likely to name their car 'Betsy' but unusual names become popular [INSIGHT]
CarWow also warned drivers that Jermey Hunt is expected to announce a rise in VED during the spring budget to increase in line with the Retail Price Index.
Based on the emissions produced by vehicles, the proposed rise in the VED rate will most likely affect owners of older models that could already be affected by Ultra Low Emission Zones.
As with fuel duty, the exact increase has yet to be announced, however some motoring experts have suggested new car drivers could pay close to £200 to tax their car.